S Group H1 2017 results: retail sales increased by 2.4% and stood at EUR 5.5 billion

S Group H1 2017 results: retail sales increased by 2.4% and stood at EUR 5.5 billion

 

Helsinki, Finland, 2017-Aug-08 — /EPR Retail News/ — During the first half of the year, S Group’s result improved across the board. In particular, the travel industry and hospitality business as well as the consumer goods trade showed positive figures.

S Group’s operating result for January–June 2017 was EUR 128 million, compared to EUR 87 million in January–June 2016. SOK Corporation’s operating result remained at last year’s level and amounted to EUR 11 million. S Group’s retail sales excluding taxes increased by 2.4% and stood at EUR 5.5 billion.

The improved result is attributable to streamlining of S Group’s operations and increased sales in various business sectors. Other contributing factors are a wider product range, extended store hours and lower prices. In Finland, S Group’s grocery sales continued to outperform the general market development in the field.

The price of food has been cut by a total of more than EUR 150 million throughout the S Group. To date, the sales margins have been reduced for approximately 3,000 products.

“The improved result allows us to continue lowering prices in future. We will also improve the selection of products and services. A recent example from the consumer goods trade, is the Boy Meets Girl clothing line launched in the Prisma stores in August,” says Taavi Heikkilä, CEO of SOK.

Good service regardless of contact channel

S Group’s digital services have become increasingly popular. The online food trade increased by close to 50% from the corresponding period last year. The ABC mobile refuelling service is available at all ABC stations across the country, and approximately 200,000 co-op members already use S Group’s electronic receipt archive. New services are also underway.

“We want to provide unparalleled convenience and benefits from services. Our ambition is to provide customers with the same quality of service, regardless of the service channel,” says Heikkilä.

Customers have welcomed the extended store hours, including 45 S Group outlets that are open around the clock.

S Group’s investments remained at last year’s level and amounted to EUR 246 million. The main investment object was the new logistics centre for grocery products being built in Sipoo, which is already partly operational.

Co-op members were paid EUR 162 million in Bonus rewards, which was approximately EUR 10 million less than in 2016. Most of the decrease is attributable to a change in legislation prohibiting Bonus rewards for cigarettes and tobacco products. Co-op members received close to EUR 4 million in payment method discount for paying with S-Etukortti card.

S Group’s and SOK Corporation’s key figures for January–June 2017

S Group as a whole (cooperatives + SOK Corporation), January–June 2017:

  • Retail sales excluding taxes totalled EUR 5,464 million (EUR 5,336 million).
  • Retail sales increased by 2.4 percent.
  • Profit before appropriations and taxes was EUR 119 million (EUR 105 million).
  • Operating profit was EUR 128 million (EUR 87 million).
  • Investments totalled EUR 246 million (EUR 246 million).
  • At the end of June, there were 2,295,749 co-op members (2,246,459).
  • At the end of June, the number of personnel was 41,381 (41,337). This year, S Group is employing a total of around 13,000 summer employees and summer trainees through the Learn and Earn programme.
  • The total number of outlets at the end of June was 1,630 (1,647).

SOK Corporation (SOK + subsidiaries), January–June 2017:

  • Net sales (IFRS) were EUR 3,449 million (EUR 3,466 million).
  • Profit before taxes (IFRS) was EUR -4 million (EUR 11 million). The result was affected by non-recurring costs for closing the stores in Latvia and Lithuania.
  • Operating profit (FAS) was EUR 11 million (EUR 10 million).
  • Investments totalled EUR 25 million (EUR 50 million).
  • At the end of June, the number of personnel was 6,708 (6,604).

SOK Corporation’s full interim report will be available in the S-kanava online service on 17 August 2017.

Source: S Group

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S Group’s retail sales increased by 2.2% in January–March 2017

S Group’s retail sales increased by 2.2% in January–March 2017

 

Helsinki, Finland, 2017-Apr-14 — /EPR Retail News/ — S Group’s retail sales excluding taxes increased by 2.2% in January–March and stood at EUR 2,567 million. Customer numbers and sales continued to increase for Sokos and Emotion, which was particularly delightful.

“I am very pleased with our performance in the first quarter. Department stores have attracted a large number of new customers, and supermarket sales continue to be at a good level,” says Taavi Heikkilä, CEO of SOK.

The growth of S Group’s grocery sales outpaced the market in Finland. S Group’s grocery sales amounted to EUR 1,582 in the first quarter. The Group continued to reduce prices, which increased the sales of Finnish vegetables in particular.

The ABC chain has recovered from the decline caused by the deregulation of opening hours, and its sales resumed growth in the first quarter.

The comparable sales of the Prisma stores in St Petersburg assumed a growth trend in 2016 and continued to grow in 2017. A good rate of growth was also recorded for S Group’s hotels in the St Petersburg region.
S Group’s retail sales excluding taxes, Jan–Mar 2017

Business area Sales (EUR million, entire S Group) Change in comparison to Jan–Mar 2016 (%)
Supermarket trade* 1795.2 0.2
Service station store and fuel sales 372.4 10.7
Travel industry and hospitality business* 182.3 1.6
Department store and speciality store trade 70.9 11.0
Hardware trade 29.6 -5.0
Other 116.2 6.4
S-Group total 2566.6 2.2

* The figure includes sales in the Baltic countries and Russia.

More information:
Taavi Heikkilä
CEO
SOK
tel. +358 10 76 80200

Jari Annala
Senior Vice President
CFO
SOK
tel.: +358 10 76 82040

Jorma Vehviläinen
Executive Vice President
SOK
tel. +358 10 76 80608 (Baltic countries and Russia)

Source: S-Group

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